Africa-Press – Zambia. If a transaction happens in Zambia, it settles in Kwacha.
The Bank of Zambia (BoZ) has officially drawn a line in the sand. As of December 26, 2025, the Currency Directives, 2025 are in force. This marks the end of an era where local businesses could demand foreign currency for local goods and services.
This isn’t a surprise move; it follows the February 2024 announcement and extensive consultations across mining, finance, and agriculture. But now that it is law, the question is: How do you protect your business while staying compliant?
Under Section 18 of the BoZ Act, any transaction that originates and settles within Zambia must be contracted and paid in ZMW (Kwacha/Ngwee). Whether you are selling real estate, rentals, consulting services, or agricultural produce, if the buyer and seller are in Zambia, the money changing hands cannot be USD. Simple core rule to remember; domestic means domestic.
No
The law allows you to display or index your prices in dollars. This is the most critical detail for entrepreneurs protecting their margins. You are not banned from thinking in dollars.
You are still permitted to quote or index your prices in USD to protect against depreciation. However, the final execution involves a crucial conversion:
The Invoice: Can reference a USD base price.
The Payment: Must be executed in Kwacha at the prevailing exchange rate.
For years, Zambian businesses used dollarization as a “lazy hedge” against inflation. It was an easy way to avoid doing the math on currency risk.
That safety net is gone. This directive forces business owners to sharpen their financial planning. You need dynamic pricing models that account for daily exchange rate fluctuations. If you were relying solely on collecting hard currency to stay afloat, your business model needs an immediate audit.
Why is BoZ doing this? It is a move toward monetary sovereignty. By forcing settlements into Kwacha, the central bank gains better leverage over inflation and interest rates. A domestic market that actually uses its own currency is less exposed to global volatility.
The long term goal is to stabilize the cost of doing business for everyone.
Do not wait until your next transaction to figure this out. Execute these three steps today:
Audit Your Contracts: Review all active agreements. If they demand settlement in USD, they are now non compliant.
Update Payment Terms: Ensure your invoices explicitly state that while prices may be indexed to USD, “Settlement will be executed in ZMW at the prevailing spot rate.”
Refine Your Pricing Strategy: Move away from static pricing. Implement systems that allow you to adjust ZMW prices quickly in response to market shifts.
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